This page: Shows the situation and regulation of MVNOs or Mobile Virtual Network Operators in Brazil.

MVNO operating in Brazil

Number of MVNOs Accesses by Operators

MVNO

2015

2016

2017

Jan/18

Porto Seguro

351,566

452,408

562,520

606,414

Datora

43,030

100,915

201,182

209,782

EUTV**

-

-

17,269

18,442

Terapar

7,180

7,180

-

-

Total

401,776

560,503

780,971

834,638

*In 2014, Datora's values weren't published by Anatel.

**EUTV operates with 100% of the prepaid base.

Note: Only authorized.

Number of M2M Data Terminals (Especial + Standard)

MVNO

4Q16

1Q17

2Q17

3Q17

4Q17

Jan/18

Porto Seguro

306,952

348,354

376,284

435,026

429,256

477,982

Datora

94,475

110,720

141,830

184,842

194,742

203,342

Terapar

6,800

-

-

-

-

-

Total

408,227

459,074

518,114

619,868

623,998

681,324

Porto Seguro Conecta, started to operate in Rio de janeiro in Feb/14.

In Aug/13, Porto Seguro started the second phase of of its operation as MVNO by Porto Seguro Conecta 's launching with offer of data and voice packages and not only M2M like what happened in the 1st phase.

Porto Seguro Telecom is responsible for customer care. Ericsson was chosen to develop and install all the telephony plataform of the partnership Datora Telecom/Porto Seguro.

The authorization terms with Anatel were signed on November 17th, 2011.

Candidates to have MVNO in Brazil

Post Office

In Feb/14, Brazilian and Italian post offices announced a joint-venture to launch a MVNO in Brazil. Poste Italiane launched its MVNO in 2007.

Virgin Mobile Latin America

In Jan/14, Virgin Mobile Latin America announced a deal with Telefônica in order to use Vivo's infrestructure in Brazil and Movistar's in Mexico as support to its operations as MVNO in these countries. Virgin already operates as MVNO in Latin America in Chile and Colombia.

In Feb/12, Virgin Mobile had announced partnership with Datora Telecom to implement its MVNO in Brazil.

Algar Telecom and Tesa Telecom

Tesa Telecom announced in May/12 the MVNO project, which will focus on delivering quadriplay services in all over the national territory. First, the tests involve machine-to-machime (M2M) services. In a second step, it includes voice services. Tesa wants to offer these services to its corporative customers base, as part of the offer expansion strategy through a package of value added services.

The project counts with Algar Telecom participation, telecom company of the Algar Group, as MNO (Mobile Network Operator) and Transtelco, as MNVE (Mobile Virtual Network Enabler), that also counts with Capernow's billing plataform, and telecom solution provided by Bichara and Orange Technology.

Sisteer

Sisteer, company that operated as MVNE and has partnership with TIM, received on December 15th Anatel's MVNO authorization. The company wants tho launch a MVNO in 2012.

Candidates to MVNO

Companies that are analysing the chances of being a MVNO (as published by Brazilian press):

Correios, Carrefour, Pão de Açúcar, Estácio,

Banco do Brasil, Caixa Econômica, Bradesco and Itau.

Sercomtel, CTBC and GVT.

Operators

TIM is the operator more active on launching MVNOs.

Besides the partnership with Porto Seguro, Datora announced a partnership with Sister (MVNE).

On November 18th, 2010, Anatel approved the regulation over the exploration of Mobile Personal Service (SMP) through Virtual Network.

In order to provide the service to its clients, the virtual operator wll have to set commercial agreements with traditional mobile operators, that have the license to use the frequencies and network infrastructure.

The regulation creates two options:

Accredited Virtual Network

Authorized Virtual Network

Private contract between accredited company and traditional providers defines the business model

Contract homologated by Anatel, the accredited company doesn't need to be qualified by Anatel

SMP provider, like the current ones, but without radiofrequency, which operates by sharing the network with traditional companies

Accredited's case

The MVNO represents the mobile operator (SMP):

This representation is not considered Telecommunication Service.

Would be free of paying ICMS and other taxes charged for the providing telecommunication services.

The MVNO must to get registered in Anatel ( R$ 400.00 tax) and sign a contract with one operator. This contract must be homologated by Anatel.

The MVNO company will use operator's network, number and interconnection

Portability and operator's roaming contract also apply to the MVNO

The MVNO can have contract with only one operator in onle local area (Area Code)

SMP providers can control MVNOs.

Changes after the public consultation

The regulation approved by Anatel's council incorporated two important changes after the public consultation:

It's allowed the migration of accredited's user base when this accredited company changes to authorized or to other provider

Removal of the rule that prohibited accredited to be controller, controlled or related to an authorized company inside acredited's operational area.

With these changes MVNO will become more attractive to investments.

Proposta da Anatel: Authorized company's case

This companies:

Will have one SMP (Personal Mobile Service) authorization and the same obligations as other mobile operators

Will have a contract for sharing radiofrequency use with one traditional operator

Will be able to hire resources of the operator's network in order to build its own service network, classificated as industrial exploration

Will provide service (SMP) in areas where the operator doesn't have infrastructurer, using alternative technologies.

The company can't be a MVNO if it has its own network

The authorized company won't be in fact a MVNO because it will have its own network.

In one scenario of intense spectrum use for mobile broadband applications, the point is knowing which operator will share its frequencies with authorized companies. This strategy may be useful only in remote locations in which operators have little interest.

The authorized company could be an option for the MVNO installation if the entirely network is hired from the operator. In this case, the MVNO would have more autonomy over the operator (the opposite of accredited) but it would have to accept all the obligations of a SMP operator, what implies higher operational costs and that could make difficult to operate this business model.